Sustainability in Focus – Post 1 to 5

Sustainability in Focus – Post 1

Sustainability in Focus by Genesis Origo:

GHG Protocol is the world’s leading framework for measuring and managing greenhouse gas emissions. It helps organizations everywhere track their carbon footprint, set reduction goals, and drive meaningful climate action.

Example: a palm oil producer applied GHG Protocol guidelines to find that 25% of total emissions came from land-use changes, helping it cut overall emissions by 10% within two years through targeted reforestation and process improvements.

Sustainability in Focus – Post 2

What is Scope 1?

Corporations adopting the GHG Protocol Corporate Standard in sustainability reporting shall account for Scope 1, 2, and 3 emissions—key requirements that are also addressed under IFRS S2 climate disclosure guidelines.

Scope 1 covers direct emissions from sources an organization owns or controls, like company vehicles or fuel combustion in boilers. Scope 1 emissions are measured by collecting direct data on fuels (e.g., diesel, natural gas, gasoline) used in owned or controlled assets—such as company vehicles, on-site boilers, or generators—and applying emission factors (e.g., kg CO₂ per liter) to calculate total greenhouse gases emitted.

Sustainability in Focus – Post 3

What is Scope 2?

Under the GHG Protocol Corporate Standard, organizations report three types of emissions—Scope 1, 2, and 3—all of which are also addressed by IFRS S2 climate disclosure guidelines.

Scope 2 covers indirect emissions from purchased energy (e.g., electricity, steam, heating, or cooling). Although these emissions occur off-site at the utility provider, they’re attributed to your organization because of your energy consumption.

To calculate Scope 2 emissions, you’d typically measure how much energy your facilities consume (in kilowatt-hours or gigajoules) and then apply grid-specific emission factors. By improving energy efficiency or sourcing renewable power, companies can significantly lower their overall carbon footprint and align with global sustainability targets.

Stay tuned for our next post, where we’ll tackle Scope 3—the widest-reaching emissions category.

Sustainability in Focus – Post 4

What is Scope 3?

When adopting the GHG Protocol Corporate Standard—as also referenced by IFRS S2 climate disclosure guidelines—organizations classify their emissions into Scope 1, 2, and 3. After addressing direct emissions (Scope 1) and purchased energy (Scope 2), Scope 3 expands the view to all other indirect emissions in the value chain, both upstream (e.g., raw materials, transportation, and supplier operations) and downstream (e.g., product use, disposal, and recycling).

Measuring Scope 3 involves working closely with suppliers, customers, and partners to collect data, identify hotspots, and find targeted opportunities for emission reductions. While often the largest share of an organization’s carbon footprint, tackling Scope 3 can deliver significant sustainability improvements and build stronger, more resilient value chains.

Sustainability in Focus – Post 5

What is “Climate Risk” According to IFRS S2?

Under IFRS S2, “climate risk” refers to potential or actual impacts that climate change can have on a company’s financial performance and position. These risks generally fall into two categories:

1. Physical Risks: Costs and disruptions from climate-related events (e.g., floods, heatwaves, rising sea levels).

2. Transition Risks: Potential losses from shifting to a low-carbon economy (e.g., changes in regulations, technology, market demand).

By spotlighting these risks, IFRS S2 encourages companies to quantify and disclose how climate change may affect their revenues, costs, assets, and liabilities, helping investors and stakeholders make more informed decisions.

Stay tuned for our next post on how organizations can respond to these evolving challenges.